SAMUR Project for Developing Sabah - Well Done Sabahans!

Politicians - you can't live without them. If you need something done, you either become a politician or have a politician get it done for you.

In the case of Sabah, the people made their voices heard and demanded that they be given a larger slice of the development pie. And they got it.

Well bargained and done, Sabahans! Well bargained and done.

The following is the Media Release issued by PETRONAS Chemicals Group Berhad (PCG) on the Sabah Ammonia Urea (SAMUR) Project.

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PRIME MINISTER OFFICIATES GROUNDBREAKING FOR SAMUR PROJECT

Sipitang, February 16: PETRONAS Chemicals Group Berhad (PCG), a subsidiary of PETRONAS, today held a groundbreaking ceremony for its Sabah Ammonia Urea (SAMUR) Project in Sipitang, Sabah. The event was officiated by YAB Dato’ Sri Mohd Najib Tun Hj Abdul Razak, Prime Minister of Malaysia.

The groundbreaking ceremony for the RM4.5 billion project marks an important milestone for PETRONAS in its continuous efforts in developing and adding value to Malaysia’s oil and gas resources in line with the Government’s economic development and transformation initiatives.

The event also symbolises PETRONAS’ commitment to further spur the growth of the oil and gas industry in Sabah, supporting the Sabah Government’s Halatuju, the master plan to bring development and progress to the State.

Located in Sipitang Oil & Gas Industrial Park, the world-class SAMUR Project forms an integral part of PETRONAS’ overall downstream plans to optimise the value of the oil and gas resources found offshore Sabah, currently being developed in an integrated manner by PETRONAS.

“The development of the project is expected to act as a catalyst to the growth of Sipitang and its surrounding area, widening the manufacturing base of existing industries and promoting other spin-offs for the State’s socio-economic benefits”, said Chairman of PCG Datuk Wan Zulkiflee Wan Ariffin, who is also the Executive Vice President of PETRONAS Downstream Business.

The project will also provide a myriad of professional and technical employment opportunities for Sabahans. In this regard, PCG has embarked on a training programme at its various chemicals plants in Malaysia for Sabahan technicians, in preparation for SAMUR’s operation beginning 2015.

Riding on the strong agricultural growth in the Asia Pacific region, the project is part of PCG’s strategy to grow its fertiliser business in this important market. The project strengthens PCG’s position as a key regional fertiliser player, while supporting Malaysia’s Economic Transformation Programme that focuses on the agriculture sector as one of the National Key Economic Areas.

The SAMUR project consists of a urea plant, a granulation plant and an ammonia plant, as well as utilities and jetty facilities. The urea plant will produce 1.2 million metric tons per annum (mtpa) of granulated urea, while the ammonia plant will produce 740,000 mtpa of liquid ammonia.

This will potentially position PCG as the second largest urea producer in South East Asia, as the new plant would almost double its current production capacity. Currently, PCG operates two urea plants -- a 750,000 mtpa urea plant in Bintulu, Sarawak and a 683,000 mtpa urea plant in Gurun, Kedah.